40% increase in ZURICH assurance premiums ?

bigcheese

Anyone else either just had or can explain a 40% increase in ZURICH premiums that I have received today for an adaptable term plan ? (annual review time) Had it since the late 80's/early 90's.


Any input greatly received whilst I mull over a number of options open to me


cheers

magpiecottage

These are what are known as unit linked whole of life plans. Your premiums are invested and money taken out each month to pay for the life cover - which becomes more expensive as you get older.

In theory, the invested money has a surplus in the early years which can subsidise the cost later on. However, if the growth is not fast enough - or you live too long(!) eventually the fund runs out.

I presume this was an old Applied Crowbar plan.

dunstonh

Anyone else either just had or can explain a 40% increase in ZURICH premiums that I have received today for an adaptable term plan ?

These plans have a period of guaranteed premiums and are then reviewed periodically (typically 5 years). Depending on investment returns, you can find the premiums get increased or decreased.

In the 80s and 90s, investment returns were higher than the last 15 years. So, it is normal for these to find the premium getting increased at review points.

These type of plans are largely obsolete and if you are in good health, you may find a modern plan is better value for money now.